New definition of village electrification came into effect from the year 2004-05

As per the new definition, a village would be declared as electrified, if :

1) Basic infrastructure such as Distribution Transformer and Distribution lines are provided in the inhabited locality as well as the Dalit Basti hamlet where it exists.

2) Electricity is provided to public places like Schools,Panchayat Office,Health Centers,Dispensaries,Community centers etc.

3) The number of households electrified should be at least 10% of the total number of household in the village

Questions and Answer for the Booklet to be published by PIB on Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).

1. What is Rajiv Gandhi Grameen Vidyutikaran Yojana?

Central Government launched “Rajiv Gandhi Grameen Vidyutikaran Yojana” on 4th April, 2005 for attaining the National Common Minimum Programme (NCMP) goal of providing access to electricity to all households in the country in five years.

2. What are the aims of the scheme?

The scheme aims at electrification of over 1 lakh un-electrified villages and providing electricity connections to 2.34 crore rural households. The estimated cost of the scheme is approximately Rs. 51,000 crore.

3. What is the role of the Central Government in RGGVY?

Under the scheme, Central Government provides 90% Capital subsidy for construction of Rural Distribution Backbone (REDB), Creation of Village Electrification Infrastructure (VEI), and Decentralised Distributed Generation (DDG). Below Poverty Line (BPL) households will be provided free electricity connections with 100% capital subsidy amounting Rs.2200/- per household in all rural habitations. APL (Above poverty line) households will obtain connections according to procedure prescribed by State utilities. 10% of the project cost will be provided by Rural Electrification Corporation (REC) as soft loan.

4. Which village or hamlet is eligible for the Scheme?

A village or hamlet with population of 100 or more is eligible for the scheme.

5. Who can get free connection?

All the BPL families are eligible for free connections under the scheme

6. Is there a provision for those who are not eligible for free connection?

Households above poverty line will pay for their connections at the State prescribed connection charges and no subsidy will be available for this purpose.

Access to electricity is being provided to these establishments under the scheme.

8. Where to apply for electricity connection under RGGVY?

In case applicant falls under BPL category, he/she will be provided a free connection under the scheme on the recommendation of Gram Panchayat. In case of APL connection, applicant will have to make an application to the concerned Vidyut Karyalaya nearby state utility office.

9. Who can apply?

Any persons residing in the area covered by the scheme can apply.

10. Who sanctions/approves application?

In case of BPL connection Gram Panchayat and in case of APL connection concerned Vidyut Karyalaya nearby state utility office.

11. How does one get his village included in the DPR?

Under the scheme, state power utility prepares the Detailed Project Report in accordance with the RGGVY Guidelines. It is the responsibility of state power utility to include all the un-electrified villages and hamlets (above 100 population) in the DPR. The utility should also include already electrified villages, which need intensive electrification to provide access to electricity to all the rural households and to provide free connections to BPL families without electricity connection at present.

12. What is the funding pattern for the scheme ?

Under the scheme, projects are financed with 90% capital subsidy by the Central Government for provision of Rural Electricity Distribution Backbone (REDB), Creation of Village Electrification Infrastructure (VEI) and Decentralised Distributed Generation (DDG), wherever required. Electrification of unelectrified Below Poverty Line (BPL) households will be financed with 100% capital subsidy amounting to Rs.2200/- per household in all rural habitations. Households above poverty line will pay for their connections at state prescribed connection charges and no subsidy will be available for this purpose.

13. How much amount per project is sanctioned ?

Based on recently awarded rural electrification projects, the Ministry of Power has formulated following cost norms for village electrification in various targeted areas : -

14. Who is the implementing agency ?

The state power utilities have the responsibility of implementing the work of rural electrification in their respective states. However, keeping in view the huge amount of work, Government of India has made the services of CPSUs available to the state utilities for implementing RGGVY scheme. States, interested in availing the services of CPSUs may enter into MoUs with the CPSU(s) for availing their services.

15. Can Gram Panchayat implement the project ?

No. Gram Panchayats do not have required expertise for implementing such projects. However, they may provide their services as Franchisees for management of distribution in rural areas, once the project has been completed under the RGGVY.

16. How is the quality of equipment / construction controlled ?

The projects under the scheme are subjected to a Three Tier Quality Monitoring Mechanism. The details are as under : -

(a) First Tier

Project implementing agency (PIA) would be responsible for the first tier of the Quality Control Structure. Further PIA will engage third party inspection agency, whose responsibility will be to ensure that all the materials to be utilized and the workmanship conform to the prescribed specifications. This inspection will cover approx. 50% villages on random sample basis for each project.

(b) Second Tier

Rural Electrification Corporation, will get the inspection done of the works/ materials. The inspection will cover quality checks at pre-shipment stage at the vendors’ outlet for major materials and 10% villages on random sample basis.

(c) Third Tier

Independent Evaluators (Individuals / Agency) will be engaged by the Ministry of Power for evaluation, at random, of supply and erection under the programme. All works rated ‘unsatisfactory’ shall be re-inspected by RQM or NQM after a rectification report has been received from the REC Quality Coordinator. Recurrent adverse reports about quality of works in a given District / State might entail suspension of the Programme in that area till the underlying causes of defective work have been addressed. The Quality Control Mechanism would be governed by the Quality Control Manual, which has been released by REC for the scheme.

17. What is a franchisee ?

Under the RGGVY scheme, deployment of franchisees is mandatory in the areas for the management of rural distribution in the areas, where projects have been financed under the scheme. These franchisees will be the authorized representatives of the state power utilities. They may be given the responsibilities of operation and maintenance of the distribution system, issuance of electricity connections, attending of minor faults, meter reading, issuance of electricity bills, collection of bill payment etc. They will work under the supervision of the state utility, which will have the over all responsibility of providing proper services to its consumers.

Yes. The Self Help Groups of women may also become franchisees. Such Self Help Groups are already operating in Uttranchal and West Bengal.

20. Where can one get information regarding RGGVY scheme and progress of works?

On the website of Ministry of Power i.e.http://powermin.nic.in. A dedicated website to RGGVY will be launched shortly.

21. How many villages have been electrified so far under RGGVY?

As on 31.3.2008, 47,826 un-electrified villages have been electrified under RGGVY. Additionally, 40,838 electrified villages have been intensively electrified.

22. How many households have been electrified ?

As on 31.3.2008, a total of 27,71,610 rural households have been provided electricity connections, which include free connection to 22,93,770 BPL households.

23. How many villages will be electrified under the sanctioned RGGVY scheme ?

The Government has sanctioned Phase-I of the RGGVY scheme with overall subsidy of Rs.33,000 crore. It is targeted to electrify 1.15 lakh unelectrified villages, intensively electrify 3.41 lakh electrified villages and to provide free electricity connection to 2.34 crore BPL households in these villages.

24. Whether with the given supply of power in states, the target of rural electrification can be achieved ?

The supply of power, in turn of Section 43 of Electricity Act, 2003 is the responsibility of distribution licensee. The Section stipulates that the distribution licensee shall, on an application by the owner of occupier of any premises, give supply of electricity to such premises, within one month after receipt of the application requiring such supply. Section 6 of the Act, 2003 stipulates that the concerned State Government and the Central Government shall jointly endeavour to provide access to electricity to all areas including villages and hamlets through rural electricity infrastructure and electrification of households. RGGVY envisages creation of rural electricity infrastructure, but as part of tripartite agreement signed with State Government, it will be the responsibility of State Government to supply at least 6-8 hours of electricity to villages electrified under RGGVY.

25. What is Rural Electrification Policy ?

compliance with Electricity Act, 2003, the Central Government notified the rural Electrification Policy on 23.8.2006. The Policy aims at:

Provision of access to electricity to all households by year 2009.

Quality and reliable power supply at reasonable rates.

Minimum lifeline consumption of 1 unit per household per day as a merit good by year 2012.

26. What instructions have been given to states for comprehensive and sustainable development of rural electricity infrastructure?

States have been advised to formulate their Rural Electrification Plans to achieve the goal of providing access to all households. The Rural Electrification Plan is to map the requirements in respect of rural electrification and detail the electrification delivery mechanism(grid or stand alone) planning for inter alia, the availability of sufficient power, provision of suitable transmission and

sub-transmission network, electricity to remote villages, requirement and availability of funds from different sources, deployment of franchisee, determination of bulk supply tariff for franchisees, etc. The Plan may be linked to and integrated with district Development Plans as and when such plans become available. The plan should be intimated to the Appropriate Commission. Twelve states have so far submitted their final/draft RE Plans.

27. What steps have been taken by MOP for franchisee development?

Ministry of Power has launched a National Programme for Franchisees in May 2006 to facilitate installation of franchises in states. At the time of launching of the programme, REC circulated franchisee guidelines to all the States in May, 2006. Development of capacity building of franchises is being pursued by the Ministry of Power with REC & USAID. Ministry of Power has launched 3 “National Franchisee Development Programme.” It has two component namely Training of Trainers(ToT) and Training of Franchisees. ToT programme targets to develop 2000 trainees across the country. Franchisee training programme targets coverage of about 30,000 participants. 10(ten) ToT programmes and 3 (three) programmes for franchisee development have been conducted upto March, 2008 benefiting 289 and 88 participants respectively.

28. What are the issues which have affected smooth implementation of RGGVY.

The following issues have affected smooth implementation of the programme:-

i) Delay in receipt of Detailed Project Reports (DPRs).

ii) Delay in forest clearance.

iii) Delays in land acquisition for 33/11KV sub-stations.

iv) Limited number of good agencies able to execute turnkey jobs.

v) Very high rates quoted by contracting agencies.

vi) Shortage of material and increased prices.

vii) Delays in the issue of road permit and way bills.

viii) Delays in taking over of physical assets created by Central Public Sector

Undertakings (CPSUs) under RGGVY by state utilities.

ix) Delays in Panchayat certificates for village electrification as per revised definition.

x) Lack of awareness among villagers for taking new connections.

xi) Very poor upstream rural electricity infrastructure in some states.

xii) Delay in finalisation of BPL lists by some states.

xiii) Refusal to waive state and local taxes on materials by some states.

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